Which best describes what injector factors bring to an economic system?

Answering the question, money is the best injector factor to bring to an economic system.

Injection occurs when money is injected into the economy from sources such as investment, exports and government spending.

Money injected into the Economy through these sources helps the businesses to produce more goods and the consumers to buy more goods and services which also have a positive effect on the circular flow of economic activities.

Money is injected into the economy through the funding of several programs by the government, such as farm subsidies and social security payments. Money is also injected into the economy from the exports of goods and services.

Companies that spend money to buy capital goods are also another source through which money is injected into the economy.

The flows of money or how money is injected into the economy is what circular flow model demonstrates. The circular flow model indicates that money flows from the producers to the workers as salaries and also flows back to the producer in return for products.

However, government taxes, imports, and savings are regarded as leakages because savings are given out as loans, imports take money out of the economy as well as government taxes.

Therefore, money is the best injector factor to bring to an economic system.

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The money is the best injector factor in the economic system.

Further explanation:

Injection in economics:

In economics, the injection refers to the additional in the national income of a country. The injection in economics includes government spending, investment and exports. The injection occurs when the funds are added in the economy from the sources other than households and businesses. The household buys the goods and services from the businesses and business allocates the funds to wages, interest, rent and profit. These outflows are received by the household who then use the funds for the purchase of the goods and services. This is known as the circular flow of funds. The injection in the economy occurs when the cash is injected in the economy from the sources other than households and businesses. The injection of the funds in the economics flows in three ways:

1.Investments

2.Government spending

3.Exports  

Thus, the injector factor in economics is money. The injection is an inflow of money in the economy from untraditional sources.

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Answer details  

Grade: Senior School

Subject: Economics

Chapter: National income

Keywords: Which, best, describes, injector, factors, bring, economy, system, household and businesses.

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